The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, APRIL 28, 1930. THE INTERIM BUDGET.

Hokitika Guardian, 28 April 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, APRIL 28, 1930. THE INTERIM BUDGET.

The tabloid budget issued during the holidays by the Hon Minister of Finance, relating to the operations of the past iinan.ial year, should afford a measure of general satisfaction to all wrapped up in the stability of New Zealand. Sir Joseph Ward struck the right note when he remarked a government’s term of office depends, in the long run, on its management of the public finances, and solid progress cannot be made unless the State pays its way. This is an axiom in civil government which is all too apparent to me average political student. The present, government had to shoulder a deficit left by the previous Ministry, and in a difficult year with special demands crowding on tlm Government, emerged from the ordeal of balancing the budget with a small, but respectable surplus. The feat hears out the confidence we have always expressed in Sir Joseph Ward as the Keeper of the National Finance. The year’s operations reveal a more satisfactory position than usual with regard to the public debt in that the volume of borrowing decreased substantially. The grip the Government lias on the finances in this respect, is very gratifying, and places the Dominion so far as its public credit stands, .in a very secure posii ion. Contrasted with some countries, i\ew Zealand is standing in a greatly improved position and the maintenance of the national credit in that favour, is of the greatest importance fo all classes of trading, in fact generally to the internal welfare of the country. The. fact has In he laced, ol course, that the trade balance is considerably

against the Dominion'. 1 This is due to the level of prices -solely. Production lias increased greatly or the trade balance would be more adverse than it is. Just when wool and dairy prices will lift is an unanswerable question, for conditions are not normal. If they were, dairy products would be at a better price. It is not customary for the markets to be depressed at a record low rate for so long, and there is not any immediate answer as to the explicit cause for this variation of the rule. The wool season is past for the present, and there can be no immediate recovery there, A considerable amount of wool lias gone overseas for the Home sales, hut there is a grave doubt whether that move will be of advantage to the seller. Naturally, the difficulties of the course of trading affects the general financial position, and makes the task of the Minister of Finance' more difficult. Another factor adding to the difficulties of the general situation) is the unemployment problem. Sir Joseph’s review of the situation gives a concrete survey of the general position. There is no doubt the Government has been doing its best to afford'as great a measure df relief as possible. Over a million arid a quarter of motley was provided 1 for -fvdrks undertaken, which indicates 1 that there has been no stinting of funds. The important aspect of this problem is to find a remedy, and in this regard the Government is doing its best. Sir Joseph Ward states that every endeavour is being made to foster a farming spirit, to have more land brought u-nder cultivation, to obtain the closer settlement of existing farm lands, and generally to assist the farmers to increase the total production of primary produce. Pending the working out of these far-reaching economic changes, the Government has not neglected the question of providing immediate work for the‘ lunfortuna j members of the community who otherwise''"would bo" oht 'bf employment. Regarding additional revenue, it is clear’ the Minister has the intention of drawing more income from the large landowners, who it is indicated, have not been paving a fair share. To assist in balancing the revenue, expenditure is being overhauled, and in respect to defence there is to be a curtailment. The Minister’s statement leaves no doub as to the clear understandings of the national position, air’ when the completed budget and full statement of policy is brought down, the public confidence in Sir Joseph’s administration should be further assured.